For filing income tax return for FY 2024-25 (AY 2025-26), more taxpayers can now use ITR 1 and ITR 4 forms. The Income Tax Department has eased the eligibility criteria, allowing individuals with long-term capital gains (LTCG) from equity shares or mutual funds to file ITR using these forms—provided such gains do not exceed Rs 1.25 lakh in the financial year.
Previously, individuals with income over Rs 50 lakh had to report assets and liabilities. Now, that threshold has been increased. From FY 2024-25 onwards, only taxpayers with gross total income exceeding Rs 1 crore are required to furnish details of assets and liabilities in their ITR.
With Budget 2024 introducing revised capital gains rules effective from July 23, 2024, taxpayers now need to pay close attention to the date of sale of their assets while filing ITR. Whether it’s shares, mutual funds, property, or land, the correct capital gains tax calculation hinges on the sale date.
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A key change this year is the requirement to mention the TDS section under which tax was deducted. This applies to ITR forms 1, 2, 3, and 5. Taxpayers must ensure that they have correctly mentioned the relevant TDS provision for every income on which tax was deducted.
From October 1, 2024, the amount received on the buy-back of shares by domestic listed companies will be considered as deemed dividends in the hands of shareholders. The new rule was announced in Budget 2024. The reporting requirements have been made in the ITR-2 and ITR-3 for this.
